Plan for Success in 2024
Invest in strategies and technologies that deliver bottom-line results
Strategies and Technologies
Table of Contents
Prioritizing interactions over transactions in 2024 and beyond—now that’s a game plan for success!
ITMs
Interactive teller machines (ITMs) build on the functionality of ATMs while adding additional transaction capability and the opportunity for real-time video interaction with on-site or remote staff.
With core integration, ITMs become excellent ways to extend service hours and enhance self-service offerings for your clients.
Key Benefits:
- Operate with greater efficiency: An estimated 80-90% of transactions done by a teller at a branch can be handled by ITMs. With core integration, 1 video teller can support 15-25 terminals.
- Increase client convenience & satisfaction: Core integrated ITMs can extend full-service capabilities of your branch up to 23 hours a day. Studies have shown that 84% of ITMs users are very satisfied with their experience. Even 72% of people 55+ are comfortable using ITMs.
- Reduce transaction costs: It's estimated that most in-branch teller transactions cost FI's an average of $4.50 per transaction. The same transaction on a self-service device costs between $.50 and $.70.
- Expand in your market: ITM technology enables FI's to detach their self-service channel from the physical branch, enabling them to efficiently scale their market presence—and provide greater choice and convenience for their clients.
Cost:
The cost of an ITM depends on several features and functions, as well as the configuration related to your institution’s core. Typically, different ITM models vary in cost:
- Lobby ITMs range from $30,000 - $60,000
- Drive-through ITMs range from $60,000 - $78,000, depending on recycling or standard functionality
Other cost factors include integration type and software. Features such as core integration, ATM switch integration and ActiveTeller may range from $100,000 - $150,000.
Realistically, you can expect an all-in cost between $20,000 – 25,000 annually for hardware, software and maintenance.
Bottom Line:
The market has changed immensely since the introduction of ITMs 10 years ago. Several manufacturers are sunsetting their legacy ITM and ATM series, leaving many financial institutions looking to invest ITM fleet replacement or implement this technology for the first time. ITMs can serve as a cornerstone of your branch transformation and growth initiatives.
If you’re considering ITMs as part of your strategy, it’s important to understand all of the solutions in play, what their strengths are, and how to leverage this investment to best achieve your goals.
TELLER CASH RECYCLERS
A teller cash recycler (TCR) authenticates incoming bank notes and stores them securely in an internal vault. Tellers can then process automated cash transactions from the recycler’s inventory.
TCRs are a powerful tool in today's market, proven to increase branch efficiency and security by lessening the burden of cash handling for your staff.
Key Benefits:
- Process transactions faster and more accurately
- Increase security by dramatically reducing vault transactions (from 10-30 on a busy day, down to 1-2 visits)
- Increase staff efficiency – typically, two staff members working from a single TCR can do the work of three
- Improve client relations by limiting staff trips to the vault
- Provide a “mini-vault” for an extended/disconnected drive-through setup, thereby eliminating the need for staff to carry cash across parking lots
Cost:
A TCR can range in price depending on the type of machine, maintenance costs, depreciation of the technology, etc.
The typical capital cost is:
- $30,000 - $42,000 (for purchase and installation)
- All-in cost of $9,000 - $12,000/year (including depreciation and maintenance)
Bottom Line:
For branches that could benefit from automation—those typically starting around 70 to 80 transactions per day per teller—is really where a TCR has the potential for immediate impact. One teller could feasibly scale up to as high as 400 transactions per day with the right automation solution.
VIDEO BANKING
Much like with ITMs, video banking allows you to provide multi-channel advisory to your clients and centralize employees who specialize in areas such as key lending, account opening, and wealth management. For transactions that happen less frequently but are more likely to involve human advisory and generate revenue for your institution, a video banking platform like Hyosung Connect is a great solution.
In situations where you may not have product expertise spread out across your branch network, Hyosung Connect allows your client to connect with an expert in a secure environment through video chat, including your online and mobile banking platforms. Results have shown that 80% of video calls are related to some type of value-added transaction (loans/new accounts), and have received 95% positive feedback.
Key Benefits:
- Use in the branch environment, as well as across your mobile and web banking platforms
- Connect clients with your product experts in real-time from anywhere
- Minimize website abandonment rates and achieve up to 30% improvement in closed cross-sell opportunities
- Schedule appointments when key revenue producers are available
Cost:
A good estimate for Hyosung Connect implementation is the cost of one FTE per year.
Bottom Line:
The Hyosung Connect video banking platform can enable you to drastically reduce costs across your organization while also scaling revenue production.
DESKTOP
Cash discriminators are desktop-sized machines that count, authenticate, and orient mixed currency. Automated cash handling is a helpful tool for eliminating errors and denominating deposits.
Key Benefits:
- Keep denominations counted, organized and strapped effectively
- Easily verify teller accuracy
- Quickly spot counterfeit notes with a processing rate of 1300 notes per minute; reject faulty notes from your clients at the time of deposit
- Process commercial deposits and night drop bags more efficiently; strap and get money into the vault faster
- Supplement cash recyclers by helping with heavy single-note denominations or other scenarios—such as unfit bills—that aren’t a good fit for the recycler
Cost: $2,500 - $3,000
Bottom Line:
For an estimated all-in cost of less than $100/month (including maintenance), your financial institution could save 2-3 hours per day across teller line operations by implementing a cash discriminator.
SERVICE
The use of managed services as a platform is on the rise. This could include things like software patching, graphics distribution, fleet-wide updates, and any enhancements to your software stack that can now be done remotely as opposed to on-site.
Key Benefits of QDS Service and Our Managed Service Platform:
- Uptime guarantee - We have found that the most important thing for our customers is uptime. That is why we offer a unique uptime guarantee for your ATMs and ITMs. Our team is focused 12 hours a day, seven days a week on keeping your fleet running. Should one of your units go down, the typical repair time can be under 15 minutes.
- Employed service team members: We employee our team members instead of outsourcing our service program to national organizations. This allows total quality control of our service delivery.
- Visibility and communication: We are big on communication, ensuring you have visibility into what's happening with your fleet at all times
- Prioritize preventive maintenance: Every machine in our network typically gets at least two preventive maintenance calls per year. For things like cash recyclers and other devices, we may service them up to four times per to ensure they operate at optimal efficiency.
- Security: We are of the utmost secure and our practices and procedures but at the end of the day, you have someone who cares about solving your problem whether it is our problem to solve or not. So QD s believes in hand holding working with your vendors which may be your ATM network, your core, your security vendors.
Bottom Line:
QDS has remained successful in this business by doing what we say we are going to do. We aim to tie our success to yours and deliver the exceptional service necessary to keep your institution up and running.